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Learning and Product Innovation Performance in Informal Enterprises: Evidence from Urban Ghana

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  • Avenyo, Elvis Korku

Abstract

Recognising that enterprises learn how to produce goods and services in the informal economy, this paper examines the effect of two learning processes (apprenticeship and ‘formal interactions’) on the product innovativeness of informal enterprises in Ghana. Employing unique survey data on 513 enterprises and the Type II Tobit model, our analyses reveal that apprenticeship, on the one hand, enhances the technological capability of enterprises leading to product innovativeness, while competitive formal interactions, on the other hand, provide important market feedback that enhances the innovativeness of enterprises. The paper concludes by discussing the policy implications of these findings.

Suggested Citation

  • Avenyo, Elvis Korku, 2021. "Learning and Product Innovation Performance in Informal Enterprises: Evidence from Urban Ghana," MPRA Paper 108839, University Library of Munich, Germany, revised 05 May 2021.
    • Handle: RePEc:pra:mprapa:108839
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation; Informal Sector; Learning; SMEs; Ghana; sub-Saharan Africa (SSA);
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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